KOCHI: The local audit department has pulled up the Greater Cochin Development Authority (GCDA) for a land sale executed with a realty group in 2015 in which the per cent price tag was less than half of existing market rate. The agency sold 45.83 cents of land at Mathanagar in Kadavanthra at just Rs 8 lakh a cent, whereas the report by senior town planner of the agency had valued the land at Rs 17 lakh a cent.

GCDA executed the sale deed for the land parcel with Laina Roy, Sandeep Luis and Arun C Mathew, all partners of Blueone realtors on April 13, 2015. As per the local fund audit, the loss incurred by GCDA on account of selling the land at a reduced price is Rs 4, 12,47,000. Had the land been sold at the market rate the agency would have fetched Rs 7,79,11,000. But the GCDA, which sold the land at the rate of Rs 8 lakh a cent could earn just Rs 3,66,64000.

GCDA officials say that they had been forced to sell the land due to legal issues. In 2005, GCDA decided to sell the said land. During the auction, P A Naseer of Pathadippalam offered the highest rate which was Rs 5,25,000 a cent. Later, the original owners of land from whom the GCDA acquired the land moved the court challenging the sales citing that the land can be used only for the project said in the town planning scheme. Later, the court rejected the petitioners' plea in 2008.

"Naseer had not taken back the amount he deposited as earnest money deposit (EMD) during the tender in 2005. On GCDA's part, the agency hadn't terminated the tender. So, Naseer came up with claim after the court disposing land owners case. At first, the GCDA, which was planning construct an auditorium in the said land rejected the proposal by Naseer.

But he moved the court which ordered to consider his application for securing land," GCDA secretary R Lalu said. " Then we again invited tender after fixing the base value at Rs 7, 57, 589. During the tender Naseer offered the highest amount," he said.

But, the local fund audit department questioning the explanation offered by the GCDA said If the development agency had gone by court order, they should have sold the land to Naseer and not to Laina, Sandeep and Arun, all partners of Blueone Realtors.

"As per the application given by Naseer in 2005, he wanted to buy the land for constructing houses for himself and siblings. So, if the GCDA had to sell the land, the agency should have sold it to Naseer," said K T Cheshire, RTI activist, who lodged a complaint with vigilance department seeking inquiry into land deals by GCDA.

"It is interesting to note that the same person had offered Rs 5.25 lakh a cent for the land in 2005. After 10 years, the increase in the land value is just 2.75 lakh," Cheshire said.